Indus Towers Limited v. Commissioner Of Income Tax-4 & Ors

$~65 *IN THE HIGH COURT OF DELHI AT NEW DELHI+W.P.(C) 3928/2015 INDUS TOWERS LIMITED ..... PetitionerThrough:Mr. Gajendra Maheshwari, Advocate. Versus COMMISSIONER OF INCOME TAX-4 & ORS...... RespondentsThrough:Mr. Rahul Chaudhary, Senior StandingCounsel. CORAM:HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE NAJMI WAZIRIO R D E R%28.11.2016CM No. 43076/2016 & W.P.(C) 3928/2015 This application seeks stay of the assessment proceedings of AssessmentYear (AY) 2014 and subsequent orders. The applicant company had undergonerestructuring by an order of the Court pursuant to a policy change mandated bythe Telecom Regulating Authorities. It is stated that the Special Auditor earlierappointed under Section 142(2A) of the Income Tax Act, 1961, in his report,made certain observations which are almost conclusive on the issue, and if leftundisturbed, will adversely affect the petitioner’s submissions in the ongoingassessment in the concerned year. Learned counsel submits that since in W.P.(C) No. 239/2014, the Courthas previously directed that the assessment orders are to be finalizedsequentially i.e., chronologically, the present assessment for AYs 2013-14 and2014-15 may not be finalized and order to that effect may be made. Learned counsel for the respondent has no objection given that the order in W.P.(C)No.239/2014 has attained finality.It is accordingly directed that for theassessment years which are covered by this writ petition, final assessmentorders shall await the completion of assessment for the earlier orders.Theassessee/petitioner waives its right to urge the issue of limitation till thecompletion of such assessment in this regard since it has specifically sought thebenefit of the directions of the Court to proceed with various assessmentssequentially and chronologically. We are of the opinion that having regard to the law declared by DelhiDevelopment Authority Vs. UOI 350 ITR 432, the observations or findings, ifany, in the Special Auditor’s report should not be treated as conclusive in anymanner whatsoever by the Assessing Officer.Equally, all rights andcontentions of the assessee, to make submissions on all aspects which it may berequired to shed light by the AO are kept open.The AO shall not, in anymanner, be influenced by the Special Auditor’s objections or suggested findingsin this regard. The application is accordingly disposed off. The learned petitioner counsel submits that the writ petition may bedisposed off in the light of the above observations. The writ petition stands disposed off accordingly. The next date i.e., 23.01.2017 stands cancelled. S. RAVINDRA BHAT, J. NOVEMBER 28, 2016/sb NAJMI WAZIRI, J.